JUNE 2010

Hamburg Süd Saves Energy With PrimeLINE®

Page 2

Building Gen Sets BetterPage 6

SeaCareTM Success for Hapag-LloydPage 4

Experts Committed to Sustainability

2 Hamburg Süd with PrimeLINE®

Kartik KumarDirector of Marketing and Strategic PlanningGlobal Container Refrigeration

Charting a course to lower operatingcosts, Hamburg Süd Group recently embarkedon a voyage that ultimately led the carrier toPrimeLINE container refrigeration units.

For recent upgrades of its refrigeratedfleet, the Hamburg, Germany-based shippingline took delivery of 3,000 PrimeLINE unitsthrough 2009 – and an additional 2,000 unitsas this issue went to press – following acomprehensive review that included bothoperational trials and laboratory analysis.

With 148 ships and 340,000 containers,Hamburg Süd operates globally and is alsothe largest container carrier serving SouthAmerica. Part of Germany’s Oetker Group,it is one of the top five reefer container carriersin the world and prides itself on its qualityof service and use of new and emergingtechnologies. Hamburg Süd’s integratedcontainers, like the 40-foot, high-cubecontainers on which the PrimeLINE unitsare installed, have the greatest interior volumeavailable on the market today, according tothe shipping line.

Hamburg Süd’s refrigerated servicecomprises a proportionately larger part of itsbusiness than any other container line – 15percent of its containers are refrigerated. “Weare very reefer driven,” said Hamburg Süd’sMartin Schoeler, deputy director – LogisticsTechnology, explaining that with so much ofits business dependent on refrigerated trade,total cost of ownership of refrigeratedcontainers is especially important.

“With the increase in fuel prices overmuch of the last two years, the industrychanged a lot,” Schoeler said, explainingthat energy consumption issues “got moreimportant from the cost side, from theenvironmental side and from the customerside, because they are looking at that in moredetail.”

In response to those concerns, Schoelersaid Hamburg Süd committed to operationaltrials and lab analysis at CambridgeRefrigeration Technology in Cambridge,England, testing “all reefer machinery andenergy-saving software solutions on themarket. Ultimately, the PrimeLINE unitscored as one of the best.”

The high-performance PrimeLINE unit,featuring digital scroll technology, wasdesigned specifically to improve energy

Turning Over an Iconic Leaf

The iconic leaf on the cover, while a universal symbol for theenvironment, represents some long-standing core values of Carrier Corp.As discussed further and throughout this issue, the leaf is a new brandingelement symbolizing our ongoing commitment to environmentalstewardship. Coupled with the word “improve,” it represents our cultureof continuous improvement toward sustainability.

Through innovation and care for the environment, we improve ourproduction processes, our products and services and, ultimately, we helpyou to improve your business. Our energy-efficient PrimeLINE® containerrefrigeration unit and QUEST power-saving mode are two great examples.Both reduce the need for onboard power generation, which in turn lowersrelated emissions. Shipping lines and shippers benefit from smallercarbon footprints. As shown in the adjacent article, one such beneficiaryis Hamburg Süd, which began acquiring PrimeLINE units in 2008 afterextensive testing and has been adding more of these units over the lasttwo years.

When refrigerated containers are transferred to truck or rail foroverland distribution, the FuelWise™ option for PowerLINE® generatorsets helps to improve your bottom line by conserving diesel fuel withoutcompromising refrigeration demand.

Carrier’s SeaCare™ Solutions warranty and maintenance programshelp customers such as Hapag-Lloyd improve operations by keepingequipment running in peak condition. The program can also benefitcustomers by reducing the hassles of paperwork associated with traditionalrepair authorizations.

Process improvement within our own organization is revealedelsewhere in these pages, as we introduce a new generator setmanufacturing line and showcase Carrier’s exceptional compressorremanufacturing capabilities. Our sustainable production processes resultin unmatched product quality.

Clearly, it’s not a new leaf we’re turning over. We started sowingthese sustainable seeds 20 years ago. As long-time shipping industryveterans know, a major advance in refrigerated container shipping wasthe phasing out of ozone depleting refrigerants, a cause that CarrierTransicold championed. Thanks in large part to Carrier’s leadership,non-ozone-depleting R-134a is used almost universally today for containerapplications. In search for ever-more sustainable solutions, Carrierresearchers continue to explore and test potential next-generationrefrigerants, targeting those with lower global warming potential (GWP)than those currently used. Until those new refrigerants becomecommercially available, R-134a remains the most environmentally soundchoice for container units, with the lowest GWP of any non-ozone-depleting refrigerant used in container applications.

In keeping with our theme of improvement, we are encouragedabout recent signs suggesting a return to positive growth in refrigeratedtrade. In step with that, Carrier’s Container Products Group hit a significantmilestone earlier this year: we have now sold more than three-quartersof a million container refrigeration units. Our business is sustainable,thanks to your continued confidence in us.

shipping

Hamburg Süd’s 5,000 PrimeLINE units can improve shipping by saving enough

energy over their operating life to avoid more than 100,000 tons of carbon emissions

compared to industry averages, the equivalent of removing more than 1,650 cars

from the road.

3Sails to Energy SavingsUnits

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The Rio de la Plata, with a slot capacity of 5,900 TEU, is one ofHamburg Süd’s largest and newest vessels. Ships in its class have1,365 reefer container plugs.

Some of Hamburg Süd’s new integrated containers with PrimeLINE® units.

efficiency and reduce environmental impact and lifecycle costsfor refrigerated containers. The unit’s reduced power requirementsalso help shipping lines conserve precious fossil fuel, therebyreducing emissions related to shipboard power generation. Ituses environmentally sound R-134a, which has the lowest globalwarming potential of all contemporary container refrigerants.

“The lower the energy consumption, the smaller thecarbon footprint you generate, so that’s also an important factor,”Schoeler said.

Hamburg Süd, also known also by its full name, Hamburg-Südamerikanische Dampfschifffahrts-Gesellschaft, was foundedin 1871 serving the South America-to-Europe trade lanes. In1906, Hamburg Süd launched its first temperature-controlledservice between the South American east coast and Europe, lateradding ships with dedicated reefer holds in the 1930s and fullreefer vessels in the 1950s.

The company took its first steps with refrigerated containersin the 1970s, deploying them on routes serving Australia/NewZealand-to-North America routes.

Hamburg Süd purchased its first Carrier Transicoldrefrigeration unit in 1980, in time to launch refrigerated containerservice between the east coast of South America and northernEurope. Since that time, Hamburg Süd has relied on thousandsof Carrier units, including StreamLINE®, EliteLINE® and nowPrimeLINE units. For perishables requiring a precisely controlledenvironment, Hamburg Süd also offers customers a variety ofatmosphere management options, including containers employingCarrier’s Everfresh® controlled-atmosphere system.

Given recent fuel price trends, “Carrier’s decision to investin development of the PrimeLINE unit came at the right time,”Schoeler said.

“Hamburg Süd sets high standards for quality andperformance; not only for their own organization and operations,but also for their suppliers,” said Remco Balkestein, Carrier’scontainer products account manager for Europe. “As we lookback on our 30-year relationship with Hamburg Süd, we arepleased that Carrier’s advanced refrigeration products andexceptional service keep us as relevant as ever today.”

SeaCare™ Keeps Hapag-Lloyd“Ship Shape”

4

Continuous process improvement is one of the many waysHapag-Lloyd AG strives to be among the shipping industry’sleaders in innovation and quality.

To this end, Hapag-Lloyd takes advantage of SeaCare™Global Container Solutions, Carrier’s comprehensive worldwideprogram for container refrigeration service and support. SeaCareSolutions helps the shipping line streamline maintenance processeswhile also improving equipment reliability and uptime.

Hapag-Lloyd uses the multi-faceted SeaCare Solutionsprogram in two distinct ways: preventive maintenance for itsinventory of Carrier Transicold generator sets in North America,and warranty renewal for some of the Carrier containerrefrigeration units that make up one of the world’s largestrefrigerated container fleets.

Preventive Maintenance for Gen SetsThe preventive maintenance (PM) program for generator

sets benefits customers in several ways. It places a fixed cost onwhat is normally a variable and sometimes unpredictable expense.It can improve generator set reliability, as has been demonstratedby a reduced number of warranty claims where PM programsare used. And attention to preventive maintenance also helps insignificantly reducing the likelihood of in-service equipmentfailures due to normal wear and tear.

For Hapag-Lloyd, PM services are provided annually for allgenerator sets covered by the program, which includes unitspurchased as far back as 2002. Carrier keeps track of anniversarydates and each week tells Hapag-Lloyd which units are due forservice. Hapag-Lloyd’s asset tracking system determines unitlocation so Carrier can dispatch personnel from the appropriateservice centers. The work is handled through any of 11 servicecenters aligned with Hapag-Lloyd operations from Halifax downthe East Coast and from Long Beach to Seattle on the West Coast.

“It’s a lot cleaner, faster process,” said Hapag-Lloyd’sGene Tusa, manager of Maintenance and Repair, based in Hapag-Lloyd’s Corporate Logistics office in Piscataway, N.J. Accordingto Tusa, the program removes the administrative steps requiredfor specific repair authorizations and payments.

“The service centers have the list, it’s in the yard, they dothe PM. There’s no guesswork. If they find a problem, they knowit’s under contract and they follow Carrier procedures to fix it.The service work is done to factory specifications, and the genset’s back up and running on the spot.

“The PM program keeps the service levels the samethroughout the U.S. and Canada,” he said. “No matter where it’sat it will be serviced and repaired by a Carrier dealer. Only CarrierOEM parts are used for the repair, and that’s important to us.”

Extended Warranties for Refrigeration UnitsWhile the PM program has been in place for a number of

years for Hapag-Lloyd’s North American generator set inventory,more recently the company has taken advantage of the SeaCareSolutions warranty renewal (WR) program for some of the Carriercontainer refrigeration units in its mixed fleet.

WR helps shipping lines keep monthly maintenance andrepair (M&R) costs fixed and predictable by extending majorcomponent warranties beyond the standard five-year originalequipment warranty. Coverage is flexible. Terms can extend from

A service technician conducts diagnostics on of one of Hapag-Lloyd’sgenerator sets during an annual SeaCare Solutions preventivemaintenance check-up.

shipping

Carrier’s SeaCare Solutions

program provides a sustainable

customer partnership by providing

world-class aftermarket support and

programs that help shipping lines

increase their operational efficiency.

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one to 12 years and can be applied to the full unit or any oneor combination of the compressor, fan motors and controller.Parts, as well as labor, are included. If a covered part needsto be replaced for any reason, it will be done at any ofCarrier’s nearly 420 worldwide service centers.

With this comprehensive approach, Frank Nachbar,Hapag-Lloyd’s director of container engineering, considersthe program to be more like an extended service agreementand not just a traditional warranty, which may only coverparts replacement due to defects. About the only things notincluded are consumables and pre-trip inspections, althoughthese, too, can be covered under a SeaCare service contract.

Hapag-Lloyd obtained three-year WR extensions for itsnewest Carrier units, purchased in 2008, and also added one-year coverage in the second half of 2009 for a portion of itsolder Carrier refrigeration units ranging in age from six to10 years. In all, about 41 percent of Hapag-Lloyd’s Carrierunits – mostly ThinLINE models – are fully covered.

Nachbar said Hapag-Lloyd will benchmark differencesin parts replacement under the program against historicalcosts for unit care to determine savings from the program.“Lifecycle costs are a very important issue,” Nachbar said,adding that Hapag-Lloyd’s sophisticated M&R system usesthe company’s information management systems to trackrepairs and costs by unit and location for later analysis.

“We like to have permanent improvement of processesand systems,” he said, “and this cooperation between Carrierand Hapag-Lloyd can help.

“From an operations point of view, it is less burden –certainly easier for our inspectors if major parts are covered,like if you have to change a compressor,” Nachbar said.

And after all, helping shipping lines like Hapag-Lloydrun at peak efficiency while holding the line on M&R costsis the whole point of SeaCare Solutions.

Hapag-Lloyd’s Osaka Express with 730 reefer plugs.

Experts Committedto Sustainability

Emphasizingroots in environmentalstewardship and anongoing commitmentto the development of

sustainable solutions, Carrier Corp., parent of Carrier Transicold,unveiled an enhanced brand identity that combines the elementsof a stylized green leaf with the existing “turn to the experts”tag line.

The leaf represents the universal symbol for the environmentwith a unique design created exclusively for Carrier’s advertising,marketing literature, service vehicles and more. Also, a newmarketing icon builds on the leaf element with the word “improve”to visually unite Carrier’s sustainable products and services acrossbrand segments and diverse product markets. The icon representsCarrier’s commitment to improving products and services insustainable ways and the company’s culture of improvement thatwill not rest when it comes to the natural environment.

“Carrier has been an environmental leader for decades, witha clear and consistent strategy,” said Carrier President GeraudDarnis. “The new brand identity represents our longstandingenvironmental commitment in our products, services andoperations.”

Since 1994, Carrier has led the industry in the phase-outof ozone depleting refrigerants while introducing many of theworld’s most energy efficient heating, air conditioning andrefrigeration systems. In the marine shipping sector, CarrierTransicold was instrumental in leading the industry away fromozone-depleting refrigerants such as R-12 to R-134a, reducingthe global warming potential (GWP) more than 80 percenthistorically. With the lowest GWP of any non-ozone-depletingrefrigerant used today, R-134a is now used almost universallyin container refrigeration systems.

Carrier Transicold helps its shipping customers improvetheir carbon footprint by enabling them to ship perishables whileproducing the least amount of carbon emissions. The PrimeLINE®

unit with QUEST power-saving mode reduces shipboard powergeneration requirements and related emissions of greenhousegases and particulates at a rate unmatched in the industry.

In 2007, the U.S. Environmental Protection Agency awardedCarrier its “Best of the Best” Stratospheric Ozone ProtectionAward. Carrier’s environmental commitment extends into theglobal community, as the only company in the world to be afounding member of the U.S., India and China Green BuildingCouncils.

“Carrier’s environmental strategy has been clear andconsistent for years and now defines our brand identity,” said

John Mandyck, Carrier vice presidentfor Sustainability & EnvironmentalStrategies. “We are the first companyin the HVACR industry to directlyincorporate sustainability into our brand,reinforcing our environmentalleadership.”

6 Building Gen Sets Better

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What does a PowerLINE® generator set have in common witha sleek BMW Z4 roadster? For starters, an innovative fusion ofcraftsmanship and automation that raises the bar when it comesto quality, according to industrial engineers at Carrier Transicold’sAthens, Ga., plant where a new manufacturing line now producesthe world-class generator sets.

At this facility, located in the southeastern United States,each generator set is hand-assembled by skilled technicians, butthe contemporary twist is that those technicians now use some ofthe most advanced computer-assisted manufacturing technologiesavailable anywhere – the same type of tools and systems used byBMW and other automakers that Athens engineers benchmarkedprior to developing the production line.

Originally opened in 1987, the Athens plant serves asthe North American manufacturing hub for Carrier Transicoldtruck and trailer refrigeration systems and air-conditioning systemsfor buses. In 2009 generator set production moved into adedicated area in the Athens plant. Athens management also setaside part of its warehouse for generator set finished goods tosupport customer delivery needs.

“The investment in Athens has launched a new era of gen setproduction for Carrier,” said Charu Mahajan, product managerfor generator sets. “The entire production process was designedto optimize flexibility for quick changeovers, allowing for a mixed-model assembly and more responsive delivery times.”

Parading Robots and Thinking ToolsOne of the most dramatic differences from conventional

manufacturing is that the traditional conveyor line gave way to aproduction system that uses automated guided carts (AGCs) thatmove partially finished assemblies from one workstation to the next.

As employees complete each assembly step, AGCs advance tothe next workstations pulled by robotic “tuggers” underneath. Usingoptical guidance technology, the tuggers follow a path drawn on theplant floor in bright orange tape. When assembly steps are completed,

musical tones sound from the carts, cueing workers that in twominutes the carts will slowly move in synch like a single-file paradeto their next stops. When each unit reaches the “run test” booth, itsAGC signals the booth doors to open automatically, allowing thecart to enter the enclosed booths.

The use of AGCs, rather than conveyors, gives assemblersgreater access to the equipment, according to Troy Rector, Athensplant manager. This helps to assure better assembly of each unit.

“It gives us the ability to work all around the unit, so youcan work on the ends, the top, front side or back side withouthaving to stand on a piece of conveyor,” Rector said. “From anergonomic standpoint the access gives our workers an advantage,and that, in turn, drives quality because they can do theirjobs better.”

Production team members are equipped with cordless“smart tools” that communicate with nearby computers by wayof wireless technology. The computers keep track of every assemblystep completed on each generator set. Tools are programmed toknow precisely how much torque to apply to each bolt, screwor nut. With the assembly tools communicating with computersthat, in turn, maintain a record, Carrier Transicold has greatlyincreased information traceability about any generatorset’s assembly.

“These processes and tools improve assembly times and productquality,” Rector said, explaining that greater consistency is assuredbecause the electric tools provide the same amount of torque onthe first bolt as the 50th bolt, unlike pneumatic tools that rely ona compressed air supply, which can vary. Also the risk of missingassembly steps is virtually eliminated.

Not only does the new system help Carrier enhance quality,but it also provides greater flexibility in terms of how the assemblyline is set up, Rector said. Layout pathways can be removed fromthe floor and retaped, and steps can be reprogrammed into thesupport computers far more easily than rebuilding a traditionalassembly line.

PowerLINE Gen SetsJust as Carrier Transicold’s container refrigeration systems lead theindustry, so too do its diesel-powered generator sets, which are used topower refrigeration units when refrigerated containers are transferredfrom ships for overland distribution by truck or rail. Recent advancementsinclude a diesel engine that dramatically reduces particulate matter emissionsand the FuelWise™ option capable of boosting fuel efficiency by up to37 percent. Carrier’s Athens plant produces both models of PowerLINEgenerator sets – the UG15, which mounts to the underside of a containerchassis, and the RG15, which mounts directly on the front of the containerrefrigeration unit.

Technologies Advancing Assembly (clockwise from upper left) – Automated tools know exactly how much torque to apply to a bolt.Troy Rector, plant manager, and Geoffrey Mack, business unit manager, at the Athens plant where PowerLINE generator sets are now made.Orange lines on the floor guide automated carts to workstations. A cart scoots out of a test booth after automatically activating doors.

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Committed to CustomersSeeing the generator sets produced in this modern facility

reinforces Carrier’s commitment to delivering a quality product,as customers who recently toured the facility observed.

“We were impressed with the organization of the factoryoperation in Athens. In particular, the robotic line movement ofthe units from station to station under timer gives a state of the artappearance. Also the enclosed test booth is a nice feature,” saidDavid Esposito, technical manager, Maersk Lines.

Equally impressed was Delvin Johnson, technical servicesmanager for Crowley Maritime Corp., who said, “The newgen set assembly line is a tremendous improvement, and itwas evident how much pride Carrier and its employees takein producing the generator sets.”

Rector explained that the implementation of advancedmanufacturing processes reflects a commitment from the highestcompany levels and is in keeping with the Achieving Competitive

Excellence (ACE) program from parent company UnitedTechnologies Corp. (UTC). In the ACE program the Athens plantis distinguished as a Silver site.

Athens follows UTC’s “visual factory” protocols withwhite-painted ceilings, upgraded energy-efficient lightingand color-coded pipes. The brighter, whiter lighting also led toproductivity and quality improvements, because assemblers havean easier time seeing intricate components or spotting aestheticissues before products are shipped.

The Athens plant is certified in accordance with the InternationalOrganization for Standardization (ISO) for quality managementpractices (ISO 9000) and environmental management (ISO 14000).

“It’s part of a corporate commitment to continuousimprovement, or ‘Kaizen,’ to use the Japanese word for it,”Rector said in describing the facility and its flexible advancedmanufacturing processes. “We’re taking it to a different level atthis plant.”

At the Athens plant, high-efficiency lighting improves assembly quality and saves

enough energy to reduce greenhouse gas emissions by 842 metric tons annually.

A water recovery system and related improvements saved the equivalent of

22 households’ annual water usage per year.

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shipping

For overland shipping of refrigerated containers, PowerLINE generator sets equippedwith the new FuelWise option use less diesel fuel, considerably extending the rangethat refrigerated cargo can travel between fill-ups.

Conserving resources and saving money are always wisechoices when it comes to precious fuel. With that in mind, the fuel-saving dual-speed option for PowerLINE® generator sets has anew name: FuelWise™.

Introduced in 2008 for both PowerLINE undermount andclip-on generator sets, the FuelWise option delivers fuel efficiencyboosts of up to 37 percent, depending on conditions, cargo and therefrigeration unit being used.

The FuelWise option achieves this performance by enablingthe generator set to run at two speeds. Initially, it runs at 1,800 rpm,providing maximum pulldown power duringthe short startup period. Then it automaticallyreduces speed to a fuel-conserving 1,500 rpmfor the duration of a trip.

At a slower 1,500 rpm the generatoroperates at 50 Hz, delivering requisite power and voltage, whileconserving fuel. “The moment the engine slows down, the fuelsavings begin,” said Charu Mahajan, product manager for generatorsets. “By saving diesel, distances traveled on a tank are extended,and the carbon footprint is reduced.

“Customers often ask what their savings will be based on aspecific commodity, so we recently ran new tests to show the gainsthat can be anticipated for some of the most commonly hauledfruits,” Mahajan said. “Using the ThinLINE unit, we tested forbananas, mangoes, melons and frozen loads, using appropriateset-points for each and measuring against different ambienttemperatures.”

In these test situations fuel savings ranged from 26 to 28percent at 38°C (100°F) ambient. These fuel savings can be boosted8-10 percent more when refrigeration units are equipped with theQUEST power-saving mode. In tests with ThinLINE® units usingQUEST mode and PowerLINE generator sets with FuelWise option,the fuel savings ranged from 33 to 37 percent compared to standardissue units.

Not surprisingly, given the rising cost of diesel fuel there hasbeen considerable interest in the option, especially among shippinglines that pay for generator set fuel.

For typical applications, based on anaverage of $2.95 per gallon diesel fuel costin the United States – the approximate priceat the time of printing – the FuelWise optionprovides payback in just under five months.

If the container unit already has the QUEST option, the paybackperiod is shortened by a month.

“Using the FuelWise option, customers can enjoy the dualbenefits of direct fuel savings and longer hauls prior to refueling,”said Phil Laros, global service program manager for Carrier’sContainer Products Group. “FuelWise option retrofit kits arerelatively simple to install, so customers can either choose to orderand install them or have Carrier handle installations. All Carriergenerator sets with Tier4i engines can be retrofitted with theFuelWise option.”

Given the proven results and return on investment for customers,it’s clear that the wise thing to do for generator set fuel economyis to install FuelWise from Carrier Transicold.

Mango13°C

Big Savings with FuelWiseTM

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PowerLINEPowerLINE/FuelWise

28%

26%28%27%

Banana14°C

Melon3°C

Frozen-17°CSetpoint

Big Savings with FuelWiseTM

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PowerLINEPowerLINE/FuelWise

Sage Advice: Choose FuelWise™ Option

Test conditions shown at 25°C (77°F) ambient using ThinLINE containerunit with a setpoint of 1.5°C (35°F).

All test conditions at 38°C (100°F) ambient using ThinLINEcontainer unit.Note: Chart has been updated from printed version.

FuelWiseTM + QUEST Optimizes Savings

PowerLINE +ThinLINE

PowerLINE/FuelWise + ThinLINE

PowerLINE/FuelWise+ ThinLINE/QUEST

28% 37%

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With capital tight for investment in new, more energy-efficientequipment, is the goal of reducing operating costs while alsoimproving environmental stewardship simply too lofty? Not forshipping lines that take advantage of the QUEST power-savingmode for their existing Carrier refrigeration units.

“Offering a relatively short payback period, the QUEST controlsoftware option refreshes older container refrigeration units withcontemporary energy-saving efficiency,” said Phil Laros, globalservice program manager for Carrier’s Container Products Group.“The QUEST option is also an appropriate upgrade for new units.”

QUEST, which stands for Quality and Energy efficiency inStorage and Transport, governs the run-time of container refrigerationsystems and cycles refrigeration on and off based on temperaturesettings for specific perishables. This technique maintains thetemperature of produce in transit, whereas the conventionalrefrigeration approach is to precisely control the supply airtemperature.

Allowing the refrigeration system to cycle on and off in acontrolled fashion results in a significant energy savings – upto 50 percent on containers equipped with Carrier’s ThinLINE®

refrigeration unit – without compromising protection of perishablecargoes. QUEST mode is backed by research from leading specialistsin post-harvest food quality preservation and transport, theAgrotechnology and Food Sciences Group of Wageningen Universityand Research Center in the Netherlands.

QUEST mode can be specified for newly purchased equipment,and an increasing number of fleets are doing just that. As manyleading fleets are finding, it can also be added to units alreadydeployed by the experts from Carrier’s service center network.Installation is a matter of changing controller configuration softwarefiles and uploading the QUEST protocols into the controllerduring pre-trip inspections, according to Laros.

One major shipping line recently conducted a QUEST modeupgrade for its fleet, comprised 90 percent of older ThinLINE unitsand the rest EliteLINE® units. In doing so, the fleet can potentially

reduce carbon emissions by up to 220,100 metric tons a year,the equivalent of removing nearly 40,200 cars from the roadannually. The prospective energy savings over the life of theunits is also substantial.

For fleets considering upgrades and wanting to know thepossible financial savings with QUEST mode, Carrier has anEnergy Cost Model that can help, Laros said. The model factorsin variables such as the type of on-board electrical power generationsystems used by the fleet, fuel type, engine thermal efficiencyand fuel consumption. Calculations also take into considerationnumber of refrigeration system running days on board per year,container size, type and temperature of cargo carried and type ofCarrier units used.

Although significant savings will be had with all types of Carrierrefrigeration systems, the percentage of savings is greater withThinLINE units than EliteLINE and PrimeLINE® units, becausethose units are more energy efficient to start with. So the mix ofunits is another consideration, Laros said.

Fuel prices, which vary weekly and by location, are also factored.The model has helped select shipping lines decide to upgrade basedon their own anticipated usage.

“A growing number of shipping lines have found that they cansignificantly improve operations and boost their bottom lines throughtechnology enhancements to equipment they are already using,”said Laros. “QUEST mode makes existing equipment more energyefficient, which in turn reduces operating costs and improves itsoverall environmental impact.”

In this age of high fuel prices and growing concern over whatgets dispersed into the atmosphere, shipping lines are exploringevery possible way to reduce their energy needs and carbon footprint.QUEST mode answers the call.

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SIMPLIFIED QUEST ENERGY COST MODEL EXAMPLE

Number of 40' Containers with QUEST-equipped ThinLINE Units 10,000

Fuel Cost $480 (USD/t)

Type of Fuel IFO 380

Trips per Year 4

Chilled / Frozen Split 50:50

Days on Vessel Power per Trip 21

Days on Shore Power per Trip 6

Annual Fuel Savings 6,400 tonnes

12-YEAR FUEL SAVINGS 76,600 tonnes / $21 million (net present value)

12-YEAR CO2 REDUCTION >300,000 tonnes

In this example, QUEST mode saves about enough fuel over 12years to operate three containerships for one year. Lower powerrequirements for the refrigeration units reduce fuel consumptionand CO2 emissions related to power generation.

Tap the Power ofQUEST

shipping

When installed on Carrier container units, QUEST mode reduces the amount of

electricity a ship must generate to run refrigeration units. Emissions related to

power generation are reduced proportionately too, helping to further shrink a

shipping line’s carbon footprint.

The ThinLINE® unit’s reciprocating compressor hasearned a reputation as a well-engineered workhorse. Each ismanufactured by Carrier’s Carlyle Compressor factory in StoneMountain, Ga., near Atlanta, a facility recently named byIndustryWeek as one of the 10 Best Plants in North America.The distinction was earned in part due to product quality andreliability at a competitive cost.

While the ThinLINE unit’s compressor is designed for longyears of reliable service, when maintenance calls for replacingone, the unit is unique in that it can take advantage of a genuineCarrier remanufactured compressor.

To be sure, there are other remanufacturedcompressors on the market. But what you seeisn’t always what you get. Carrier Carlyleremanufactured compressors provide thesame reliability and global warrantysupport as new ones. More importantis the depth of quality, engineeringand care that goes into Carrier’scompressor remanufacturing,let alone the distinction betweenremanufactured compressorsand those “rebuilt” by third-party vendors.

In what some might considerthe ultimate recycling operation,each year thousands of Carlylecompressors are removed from ThinLINEunits, as well as other types of Carrier heating,air-conditioning and refrigeration equipmentfrom around the world, and returned to theCarlyle facility to be born anew.

At the plant, employees are evenly splitbetween compressor manufacturing for new units andremanufacturing operations for compressor replacements.According to Mickey Halsey, a product managementspecialist in Carrier’s Performance Parts Group, housingboth operations under the same roof provides advantages.“You tap into the knowledge of the new compressor with theremanufacturing team – there’s that exchange of information,expertise and institutional knowledge that you don’t getanywhere else.”

On the remanufacturing side of the plant, compressorsare not repaired. Rather, they are carefully and completelydisassembled piece by piece and then rebuilt to originalequipment manufacturer (OEM) specifications, in muchthe same manner as the new compressors being made on theother side of the plant. About 40 percent of the material fromeach incoming compressor is scrapped and ultimately replacedwith factory-fresh parts. Reusable parts are put through anenvironmentally responsible multistage cleaning process toremove dirt, foreign material and passageway obstructions.

Crankcases are visually inspected for integrity, and cylinderbores are dimensionally inspected using tools that measure

to within an accuracy of .00005 inch. If cylinder walls do notmeet Carlyle specifications, they are remachined. Crankshaftsare polished and gauged to ensure compliance. Valve plates arereground and measured to meet specifications.

Rods and pistons are inspected for damage and processedto remove minor burrs. Oil pump components are dimensionallyinspected using precision air gauging and then reassembledand tested for functionality. Electric motors are remanufactured,including complete rewinding with new wire. Then they arevarnish dipped and electrically tested to stringent specifications.

Technicians carefully reassemble each compressor,and each one is leak- and run-tested to verify

performance by measuring flow, loaded-ampdraw and oil pressure. Painting is the finalstep. The quality control doesn’t end there,however. The plant employs several full-time quality auditors whose jobresponsibilities include testing, auditingand calibration control,

as well as pulling units randomlyfrom production for dismantlingand inspection.

Remanufactured MeansReliable

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Your Needs. Your Choice.Carrier offers tworemanufactured compressoroptions. The tier-one offeringis the blue PerformanceParts compressor, featuringa double powder paintcoating, the latest OEM-specified oil pump anda two-year warranty. Itremains the most popularreplacement compressor.

For the budget-conscious,the less expensive tier-twoSelect Line remanufacturedcompressor is growing inpopularity due to economicconditions. It has a singleliquid coat of gray paint,a classic style reversibleoil pump and a one-yearglobal warranty againstmechanical failure. Both areremanufactured at the Carlyleplant and subject to the samerigorous testing and assemblyprocesses.

Welcome Aboard

With nearly 420 containerrefrigeration service centers worldwidein all major and developing ports,Carrier Transicold offers the mostcomprehensive sales and servicenetwork in the industry. The followinglocations recently joined our expandingglobal base.

Manama – BahrainTrans-Continental ShippingContact: Mr. Yusuf Al RayesTransco@batelco.com.bh+973-17532989

Aqaba – JordanBADRContact: Mr. Mahmoud Kurdibadr@badrmarine.com+962 (3) 2035965

Apia – SamoaClimate Air Conditioning and RefrigerationContact: Mr. Steve Cleverleyclimate@samoa.ws+685-25233

Felixstowe – United KingdomMaritime Transport LimitedContact: Mr. Chris Meec.mee@maritimetransport.com+44 (1394) 677778

Halsey said there are significant differences between Carlyleremanufacturing and what’s done by third-party, local rebuilders. “Smallshops look at what’s broken, try to fix it and put it back together,” he said.“The basis for superior reliability is making the investment to dismantle,upgrade and re-qualify prior to assembly to ensure that the components meetOEM specifications. Most rebuilders aren’t willing to go through the timeand expense of those processes.”

Carlyle’s high-volume assembly-line operation, with consistent processes,advanced manufacturing tools and quality-control measures, providesadvantages that a small rebuilder cannot match. Carlyle also uses better,OEM-quality parts, according to Halsey.

“For example, many rebuilders use parts of untraceable origin. On theother hand, in a Carlyle compressor, we use the same type of metal gasketon the cylinder heads that we used in the original compressor. This gaskethas better sealing and bolt torque retention properties. Once you torque itdown it’s not going to change.

“Carrier’s service and warranty coverage is unmatched,” Halsey said.“If a unit from a rebuilder fails halfway around the world, who’s going tohandle it? With Carrier, you’ve got the peace of mind that our global networkprovides. That’s what our remanufactured compressor does for you. It givesyou that opportunity to save money while buying something that’s welldesigned, well manufactured and backed extensively by the company.”

The Carlyle facility, opened in 2001, where both new and remanufactured compressorsare produced.

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Get a peek inside Carrier’s Carlylecompressor remanufacturing operationsby watching a video available atwww.carlyleccrp.com/video/carlyle1.html(English language only).

shipping

Carrier’s remanufacturing operations improve shipping by providing customerswith high quality, economical compressor replacements. Each year, 4,150 tons ofCarrier compressors are saved from landfills, and 99 percent of material that doesnot meet design criteria is removed and recycled.

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Please send your comments and story ideas to:jon.shaw@carrier.utc.comContainerLINECarrier TransicoldCommunications DepartmentP.O. Box 4805Syracuse, New York 13221 U.S.A.

A member of the United Technologies Corporation Family. UTX.Printed on recycled paper. © Carrier Corporation, June 2010.

Editors: Jon Shaw, Melanie Heaphy

Telephone: +1-315-432-6442FAX: +1-860-998-1351www.container.carrier.com

Personnel UpdateCarrier Transicold Welcomes New President

David Appel has beennamed president of CarrierTransicold, succeeding MarkCywilko, who has retiredafter 38 years of dedicatedservice to Carrier’s transportrefrigeration and air

conditioning businesses.Appel brings extensive industry

knowledge and more than 27 years ofexperience with United Technologies Corp.,including 16 with Carrier. Most recently heserved as president of Carrier HeatingVentilation and Air Conditioning (HVAC)for Europe, Middle East and Africa (EMEA).Between 2002 and 2009, Appel held variousleadership positions, including managingdirector for Toshiba Carrier UK Ltd., vicepresident of Carrier European HVACDistribution and president of Carrier BuildingSystems & Services for EMEA. Prior to thathe held several executive financeassignments. He is based in London.

“We thank Mark for hisincomparable leadership anddistinguished service toCarrier,” said CarrierPresident Geraud Darnis.“Throughout his career hehas earned the respect of co-

workers and customers, is a recognizedindustry expert, and has been an incredibleasset to Carrier and UTC. I have reliedgreatly on Mark’s advice and counsel andwish him only the best as he transitions tothis next phase in life.”

General Manager –Global Container Services

Michael Dormer returnsto the Container ProductsGroup as general manager,Global Container Services.In his new role, Dormer will

focus on driving growth of Carrier’s value-added service programs throughout theworldwide service organization, including

responsibilities for Smith Holland, TianjinYuanChang Reefer (TYR) Services andRefrigerated Container Services (RCS)Group. He also oversees Global ServiceEngineering, adding leadership in helpingthe organization deliver its industry-leadingafter-sales technical and service support.

Mike DormerTel: +1-315-432-7522Fax: +1-315-432-7698michael.dormer@carrier.utc.com

Regional Manager –Americas

Chris McHugh has alsoreturned to the ContainerProducts Group, as regionalmanager, ServiceEngineering – Americas.

Chris is responsible for managing the FieldService Engineering team, customeraftermarket support and the Service CenterNetwork for North, Central and SouthAmerica. Chris brings over 22 years ofEngineering and Management experienceto this position. 

Chris McHughTel: +1-315-432-7161Fax: +1-860-998-1099chris.mchugh@carrier.utc.com

Service EngineeringProject Manager

David Whyte has beenappointed ServiceEngineering projectmanager. In his new role,Whyte is responsible for

managing special major Service Engineeringprojects, including aftermarket productassignments, service training, response toCalifornia Air Resources Board regulationsand initiatives related to AchievingCompetitive Excellence (ACE).

David WhyteTel: +1-315-432-6411Fax: +1-315-432-7698david.whyte@carrier.utc.com

Global Container ServiceTraining Manager

Jack Kurz hastransitioned to the ServiceEngineering organization ascontainer service training

manager. He is responsible for the overallquality of customer technician training carriedout by service engineers worldwide, as wellas developing new courses and aligningcourses with customer needs. Kurz willcontinue to instruct customer classes as wellas integrate training programs throughout theentire Service Engineering team.

Jack KurzTel: +1-315-432-7608Fax: +1-315-432-7698jack.kurz@carrier.utc.com

Field Service Manager –Central America

Jorge Bazan hasaccepted the assignment offield service manager forCentral America, withterritorial responsibility

extending from Mexico to Panama. Amonghis current responsibilities are bananaproducers in Costa Rica and the servicecenter network throughout his region.

Jorge BazanTel: +52-55-91260300Fax: +52-55-91260383jorge.bazan@carrier.utc.com

Field Service Manager –South America

Chile-based AndresCatalan has changeddepartments, moving fromCustomer Training intoService Engineering as field

service manager for the “cone” of SouthAmerica. He also continues to provideSpanish-language technician-trainingcourses within the Americas.

Andres CatalanTel: +56-2-724-8448Fax: +1-860-353-6826andres.catalan@carrier.utc.com

Global Service Organization:

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